Foreign investors have shown interest in Greek bonds

Erste Bank Research Team Erste Bank

Negotiations on Brexit have moved into the main phase. Negotiators from the EU and Britain have launched the second round of talks on Brexit. Together with their teams, they will seek progress above all on key issues such as safeguarding citizens‘ rights after the departure of Britain from the bloc in the spring of 2019 and the issue of British financial commitments to the union.

Poland has been given a month to redress its reforms. The European Commission has given Poland a month to bring the country‘s controversial judicial reform into line with EU law. Otherwise, the country is in danger of initiation of a procedure that could lead to the withdrawal of Poland‘s voting rights in the EU.

Inflation has slowed down in Europe. The year-on-year rate of growth of consumer prices in the EU as a whole and the eurozone slowed down slightly in June. In countries paying with the euro, inflation fell to 1.3 percent from 1.4 percent in May and in the EU to 1.4 percent from 1.6 percent.

Paris should become the main financial center of Europe after Great Britain leaves the EU, according to French government plans. At a banking conference in the French metropolis, Prime Minister Edouard Philippe said that the government wants to achieve this goal „by all means". At present Paris ranks 29th in the Global Financial Centres Index . Greater opportunities for taking over financial activities are currently given also to Dublin, Ireland and Frankfurt, Germany.

Foreign investors have shown interest in Greek bonds. The country will earn three billion euros under good conditions. On 25 July the Greek government issued five-year bonds worth three billion euros with 4.625 percent interest. In this way the country returned to the bond markets after a three-year break. According to Reuters the new issue of bonds represents a major step for Greece to gain financial independence and leave the international rescue programme next year.

The IMF has increased its growth forecast for the German economy. While in April the International Monetary Fund was still counting on growth of the German economy by 1.6% this year, it has now raised this to 1.8%. The main reason stated was growth in domestic demand and exports. Growth in employment, increased government spending and the relaxed monetary policy of the European Central Bank are helping the German economy.

Download The Full CZ EU News Monthly Journal

Author

Erste Bank Research Team

Erste Bank

At Erste Group we greatly value transparency. Our Investor Relations team strives to provide comprehensive information with frequent updates to ensure that the details on these pages are always current.

EUR/USD remains offered near 1.1950

EUR/USD comes under pressure near the 1.1950 zone following the closing bell on Wall Street on Wednesday. The Greenback’s rebound prompted spot to face some correction while investors continue to assess the latest FOMC event. On Thursday, the focus of attention will be on the weekly US labour market data and Factory Orders.

GBP/USD hesitates at four-year highs following lackluster Fed rate hold

GBP/USD churned in place on Tuesday, hitting a brief patch of volatility but otherwise holding steady near four-year highs as the US Dollar struggles to find its footing. The Federal Reserve held interest rates steady, as many investors broadly anticipated, but the Fed’s rate statement and Fed Chair Jerome Powell both failed to give any hints about potential shifts toward future rate cuts, which many investors broadly hoped.

Gold climbs above $5,500 for the first time on record

Gold price surges to a fresh record high of $5,579 before retreating to around $5,500 in early Asian trading on Thursday. The rally of the precious metal is bolstered by strong safe-haven demand amidst persistent geopolitical tensions, economic uncertainty, and a weaker US Dollar.

Fidelity unveils FIDD stablecoin, set to launch in coming weeks

Fidelity Investments announced that it will launch its first stablecoin, the Fidelity Digital Dollar, making it one of the first large traditional firms in the US to do so. The company will leverage the Ethereum blockchain to roll out the product to retail and institutional investors in the coming weeks, according to a press release on Wednesday.

Federal Reserve pauses, sees economy on firm footing

At its January meeting, the Federal Reserve kept the Fed Funds Target Range (FFTR) unchanged at 3.50%–3.75%, a decision that was fully in line with market expectations.

Bittensor Price Forecast: TAO rallies above $240 as AI tokens rebound

Bittensor reclaims $240 immediate support, reflecting positive sentiment in the broader crypto market. The TAO derivatives market signals retail interest return as futures Open Interest climbs to $163 million.